TCP financial crisis: Commerce Division sent a summary to ECC

By Web Deskupdated : 3 weeks ago

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ISLAMABAD: 03,MARCH,2019: The Trading Corporation of Pakistan (TCP) is being faced the threat of bankruptcy, because of non-payment of dues by the country’s four provinces, Azad Jammu and Kashmir (AJK), Gilgit-Baltistan (G-B) and other institutions.

The dues of commercial banks owed by the TCP stand at more than Rs113 billion.

To solve the financial crisis, the Commerce Division has contacted the finance ministry, asking it to deduct the amount owed to TCP through the federal adjuster from the allocated budget of all provincial governments, G-B, AJK, security services, Utility Stores Corporation, National Fertiliser Marketing Limited and other institutions.

In this regard, a summary, prepared by the Commerce Division, has been sent to the Economic Coordination Committee (ECC).

It was stated that to continue its operations, the TCP, on the guarantee of the government, had borrowed billions of rupees from commercial banks.

As of September 30, 2018, the outstanding loans acquired by the TCP from banks had surged to Rs113.711 billion.

It was further stated that a directive should be given immediately to the Utility Stores Corporation and National Fertiliser Marketing Limited for clearing the outstanding bills of TCP amounting to Rs36.7 billion.

TCP is a state company that ensures the availability of essential commodities and price stability in the market.

TCP financial crisis: Commerce Division sent a summary to ECC

By Web Deskupdated : 3 weeks ago

81

Print

File Photo

ISLAMABAD: 03,MARCH,2019: The Trading Corporation of Pakistan (TCP) is being faced the threat of bankruptcy, because of non-payment of dues by the country’s four provinces, Azad Jammu and Kashmir (AJK), Gilgit-Baltistan (G-B) and other institutions.

The dues of commercial banks owed by the TCP stand at more than Rs113 billion.

To solve the financial crisis, the Commerce Division has contacted the finance ministry, asking it to deduct the amount owed to TCP through the federal adjuster from the allocated budget of all provincial governments, G-B, AJK, security services, Utility Stores Corporation, National Fertiliser Marketing Limited and other institutions.

In this regard, a summary, prepared by the Commerce Division, has been sent to the Economic Coordination Committee (ECC).

It was stated that to continue its operations, the TCP, on the guarantee of the government, had borrowed billions of rupees from commercial banks.

As of September 30, 2018, the outstanding loans acquired by the TCP from banks had surged to Rs113.711 billion.

It was further stated that a directive should be given immediately to the Utility Stores Corporation and National Fertiliser Marketing Limited for clearing the outstanding bills of TCP amounting to Rs36.7 billion.